Notice on Formulation of Corporate Strategy · ・ Enhance product portfolio in stone management...

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November 6, 2019 News Release

Company: Olympus Corporation Yasuo Takeuchi, Director, Representative Executive Officer,

and President of Olympus Corporation (Code: 7733, First Section, Tokyo Stock Exchange)

Inquiries: Takaaki Sakurai, Vice President, Investor Relations

Notice on Formulation of Corporate Strategy Olympus Corporation (the “Company”) hereby announces that the Company has resolved,

at the meeting of the Board of Directors held today, to the formulation of our new corporate strategy ("Corporate Strategy") to achieve growth as a global medical technology ("medtech") company, in order to realize sustainable growth for the Olympus Group overall.

1. Background to the Formulation of the Corporate Strategy

As we publicly disclosed on January 11, 2019, as part of the Company’s celebration of its 100th anniversary, we have formulated the corporate transformation plan titled Transform Olympus with the aim of achieving a breakthrough to become a truly global medtech company. Under this plan we have worked to build a foundation for the sustainable growth of the Olympus Group as such a truly global medtech company, through (i) forming a global and Group management system, (ii) globally integrating human resources management, (iii) reforming our medical business ("Transform Medical"), (iv) diversifying the Board of Directors, and (v) becoming a company with Nominating committees, etc.

As the first step in accomplishing this breakthrough to become a truly global medtech company, under our Corporate Philosophy of "Making people's lives healthier, safer and more fulfilling," we have now formulated a new Corporate Strategy as outlined below, with the aim of building a corporate culture to be competitive and performance-driven, focusing on creating value to our customers.

2. Overview of the Corporate Strategy

(1) Measures to achieve strategic aspirations, business growth, enhanced profitability, and stronger

organizational functions Under this Corporate Strategy, the Company’s strategic aspiration is to grow into a globally-leading

medtech company contributing to people's lives by delivering innovative solutions that benefit patients, healthcare professionals, payors, and providers. The core components for business growth and enhanced profitability, and the initiatives to heighten our organizational functions, are defined as follows. [Core components for business growth and enhanced profitability] ① Focus the corporate portfolio

The Company’s business portfolio consists of (i) Endoscopic Solutions Division (ESD), (ii) Therapeutic Solutions Division (TSD), (iii) Scientific Solutions, and (iv) Imaging Solutions. The overall medical market to which ESD and TSD belong has high growth rates and operating margins, while the Company’s business in this market is maintaining sustainable growth with high profit ratios. Accordingly, we will regularly review our business portfolio, with active investment of management resources in our ESD and TSD medical businesses, where further room for growth is anticipated.

② Strengthening our overwhelming position in ESD For the ESD, our aim is further cement our strong position in the endoscopy market, by (a)

establishing even greater competitive dominance for reusable endoscopes, based on ongoing technological innovation and firm sales capabilities, (b) expand our position in single-use endoscopes,

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where the market overall has high potential for growth and is expected to expand to satisfy currently unmet needs, and (c) cope with future shifts in the business models for medical equipment.

By taking the following specific measures, we expect annual average growth of 6% over the next three years in the ESD. (i) Maintain leadership in reusable endoscope

・ Raise the quality of endoscopy diagnosis / procedures by introducing new gastrointestinal endoscope systems incorporating AI-based CAD (Computer-aided Diagnosis) and offering new technologies to support practitioners in diverse scenes such as lesion detection, characterization, staging and procedures

・ Establish clinical evidence to show improved quality in diagnostic endoscopy via new functions

・ Continue to support doctor training in emerging markets where there is much potential for growth

(ii) Complement our portfolio with single use endoscopes ・ Build an overwhelming product portfolio for all endoscopic medical scenes by adding

single-use endoscopes to the reusable endoscope as a lineup (iii) Strengthen endoscope sales and services models

・ Introduce evidence-based/procedure-based billing models on a trial basis ・ Expand trials for comprehensive maintenance service programs

③ Focus and scale the TSD

Growth of the TSD will be gained by expanding products and spreading procedures backed with augmented sales practices, concentrating on the three fields where the Company has competitive strength: gastroenterological devices, urological devices, and respiratory devices.

By taking the following specific measures over the next three years, we expect annual average growth of 8% in the TSD. (i) Gastroenterological devices

・ Expand high added value products in the main categories of ERCP, GI stents, hemostatic devices, etc.

(ii) Urinary organs ・ Provide urology clinics with solutions for benign prostatic hypeplasia procedures ・ Enhance product portfolio in stone management with launch of new fiber laser technology

and other endo-urology devices (iii) Respiratory devices

・ Growth with endobronchial valve systems ・ Growth in EBUS by developing injection needles

For the TSD, we have moved the global division headquarters from Japan to USA to promote

expansion in what is the world's biggest medical equipment market. Our business development functions are being further enhanced to cooperate with outside partners and engage in licensing or M&As so as to expand or complement our product portfolio. Our regulatory affair and clinical affair functions are amplified while we pursue a value proposition-based approach for products and procedures.

④ Leading the next-generation minimally invasive surgery market Minimally invasive surgery (MIS) has substantial potential to improve the quality of life of patients

after surgery, but significant hurdles remain to be solved. The Company views MIS as a strategic field for growth in the medium to long term. Through innovations in procedures, enhanced instruments, and development of minimally invasive robotics, we will contribute to the development of MIS, taking

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a leading role in pioneering this market. The specific measures to be taken are as follows. ・ Establish partnerships with hospitals and academic societies to create technological

innovation ・ Targeted M&As to build technological dominance ・ Reinforcing internal functions to establish a platform for sustainable technology

development ・ Look into minimally invasive endoluminal manipulator platform

[Approaches to further organizational functions]

Initiatives to improve and strengthen financial performance The entire corporation is engaging in hundreds of initiatives in the specified areas over below the

next three to four years to achieve large-scale efficiency reforms, improving both our performance and our financial standing.

Example Initiatves Impact on profit improvement

Products (Cost of sales/R&D)

R&D: Set priorities for all R&D themes with consideration to future ROI, control expenditure appropriately

SCM: Adopt monitoring processes to review product portfolios monthly and reconcile supply and demand, to achieve greater efficiency

Up to 40%

Commercials (Sales and marketing, maintenance services)

Global Pricing Governance Council is established to set the optimum sales prices, to acquire sound deals, improve profitability for lease contracts, and realize better ASP to gain higher profits

Up to 35%

Corporate (Indirect expenses for corporate functions)

Implement global integrated facilities management service program

Global travel policy to define clear rules

Up to 25%

(2) Performance metrics The Corporate Strategy will implement the measures described in (1) to lift the operating margin to 20%

by the term ending March 2023. [Performance metrics]

Term ending March 2020 Term ending March 2023 Operating margin* Approx. 11% > 20% [Reference indicators for financial guidance]

Term ending March 2020 Term ending March 2023

Free cash flow growth* ¥50 billion > 20%

(Annual average growth rate from the

term ending March 2020) ROIC* Approx. 10% > 20%

EPS growth* ¥47 > 25%

(Annual average growth rate from the

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term ending March 2020) *Adjusted for extraordinary items

For more details on the Corporate Strategy, please refer to the attached document (presentation material)

End

Corporate Strategy

Olympus Corporation | Yasuo Takeuchi , President and CEO | 6 November, 2019

Corporate Strategy

Disclaimer

This material contains forward-looking statements that reflect management’s current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, future business decisions, and other internal and external factors that may cause the Company’s actual results, performance, achievements, or financial position to be materially different from any future results expressed or implied by these forward-looking statements.

Additionally, this information is subject to change without notice. Accordingly, other information should be used in addition to this material when making investment decisions.

Olympus Corporation assumes no responsibility for any damage resulting from the use of this material.

01 About Olympus

Corporate Strategy

Snapshot of Olympus

20,000Patentsacross ourproduct portfolio

70% Global market sharein gastrointestinal endoscopic equipment

634.3Billion yenTotal Medicalrevenue FY2019

~8%CAGRFY2017-FY2019

Growth intherapeutics

~3%CAGRFY2017-FY2019

Growth inendoscopy

Medical revenue by region

39A global footprint with a mix of upstream and downstream operations across 39 countries

In line with our Corporate Philosophy, we are evolving our corporate culture to be competitive and performance-driven and focusing on creating value to our customers

OUR PURPOSEMaking people’s lives healthier, safer and more fulfilling

Corporate Strategy

In line with our Corporate Philosophy, Olympus strives to uphold and expand our responsibility to a wide array of stakeholders, enabled by active engagement in ESG issues

We will actively engage on six ESG areas:

Healthcare access and outcomes

Compliance, product quality and safety

Responsible procurement

Employee diversity and inclusion

Olympus will focus on improving:

For a sustainable society and company development

Product sustainability

Corporate governance

Environment People Society

Economic sustainability

Corporate Strategy

Olympus provides society with innovative products and services in the Medical, Scientific Solutions and Imaging fields to realize our Corporate Philosophy

Imaging DivisionScientific Solutions DivisionMedical

Endoscopic Solutions Division (ESD) Therapeutic Solutions Division (TSD)

Our business throughout the globe

Corporate Strategy

Our strategic aspiration and performance metrics

Our aspirationis to become a globally-leading

medtech company contributing to people’s lives by delivering

innovative solutions that benefit patients, healthcare

professionals, payors and providers

Sustain 5-6% growth annually

Deliver >20% consolidated corporate operating margin1

Become leaders in the therapeutic areas where we compete (GI, urology and respiratory)

1 Adjusted for extraordinary items

02 Our Corporate Strategy

Corporate Strategy

Our corporate strategy

A

B

CD

Focus the corporate portfolio, centering on Medical

Complement our portfolio with single-use endoscopes to accelerate growth and address unmet needsEvolve the endoscopy commercial model – shift towards service-based offerings and procedure-based business models

Maintain leadership in reusable endoscopy

Focus and scale prioritized therapeutic areas (GI-ET, urology and respiratory)

Develop a leading position in next-generation minimally invasive surgery by deliveringintegrated technologies designed to improve clinical and economic outcomes

Corporate Strategy

A Our corporate portfolio

1 FY2018 Adjusted 2 FY2018-FY2019 YoY growth rateOlympus’ growth2 FY18-19, %

Operating margin1 %

Medical - TSD

SSDIMD

Medical - ESD

Size of bubble = FY2018 revenue

We will regularly assess our portfolio for fit with our corporate aspiration and focus our growth investments in Medical

Our corporate portfolio Increasing our focus

20%

5% CAGR

Corporate Strategy

A Focusing our investment on growth in Medical

1 Average operating margin of top-20 medtech companies by revenue,

~80% of revenue

~95% of profit

5-6% p.a. market growth

~20% average operating

margin1

¥

Why Medical?

The value of “early diagnosis” and “minimally invasive” therapy that Medical brings will be key to us realizing our Corporate Philosophy

Medical is our core business Medical is supported by positive market forces

Corporate Strategy

Maintain leadership in endoscopy

Maintain leadership in reusable endoscopythrough continued innovation and commercial excellence

Complement our portfolio with single-

use endoscopes to provide a comprehensive set

of product offerings

Evolve the commercial modeltowards service-based and procedure-based offerings

B Further strengthen leadership in endoscopy

To enhance the value we bring in early diagnosis, we aim to have the most comprehensive endoscopy portfolio on the market, supported by evolution of the commercial model

Corporate Strategy

Market with significant growthSingle-use is expected to grow ~20-40% p.a. over the next 5 years

Leverage leadership positionWe have 70% global market share in gastrointestinal endoscopy, giving us a unique position to shape the market and capture value

High growth in underpenetrated marketsChina: Number of endoscopic procedures expected to double by 20221, providing an ongoing source of growth and valueIndia: Only 6 endoscopists per million people compared to 254 in Japan, indicating significant room for market penetration


Addressing unmet needs Single-use endoscopes are at times the preferred choice in cases of needs of urgent and convenient preparation, and where high-level infection control is required.

Completing our portfolioTogether with our extensive reusable portfolio, we are positioned to be the only company to provide a complete offering for every situation

Shift towards value-based payment Value-based payments as percentage of healthcare spending in the US has grown from 23% to 34% between 2015 and 2017

Cost pressure on providers Continued cost pressure incentivizes providers to avoid exposure to significant capital equipment cost, creating demand for procedure-based commercial models

1. Compared to 2012 Source：Independent research

Our endoscopy strategy


Complement our portfolio with single-use endoscopes Evolve the commercial model

¥

Value of service-based business models Other leading medtech companies are rapidly expanding into service-based businesses

Headroom to grow in reusable endoscope

Significant upside in single- use endoscope

Value is shifting to new commercial models

Corporate Strategy


Infection control requirementsSingle-use endoscopes may eliminate the need for reprocessing and maintenance, which can be beneficial where a higher-level of infection control is required e.g., high risk patients, focusing on / depending on patients’ needs

Durability requirementsIn cases of repeated procedures that quickly erode the durability of reusables, or in areas where smaller diameter are required, single-use endoscopes may provide our customers with a valuable option, e.g., ureteroscope, cholangioscope

Procedure-specific requirementsAs reusables are not typically procedure-specific, single-use endoscopes provide a more specialized option that can be tailored to more specific needs/procedures e.g., bronchoscope in the ER (sterile, ready-to-use and highly mobile)

Where single-use endoscopes create differentiated value

Corporate Strategy

Setting a new standard for endoscopic diagnosis and therapy with our new endoscopy system

Detection

Characterization

Staging

Treatment

1. CADe – Computer-aided detection 2. CADx – Computer-aided diagnosis

Leverage AI-enabled software to improve lesion detection

Wider depth of view makes it easier to use the magnification function on the endoscope

Real-time diagnosis of lesions using AI-enabled software

High definition magnified image allows for more accurate staging

Visualization of vessels can improve efficiency and error rate of endoscopic treatment

3D imaging improves efficiency and shortens the learning curve of endoscopic treatment

B Further Strengthen leadership in endoscopy

New endoscopy system aims to introduce technologies that set a new standard for detection, characterization, staging and treatment

CADe1

Super wide depth of view

CADx2

Magnification technology

Vessel visualizing technology

3D imaging

Corporate Strategy

B China is a key region that will support growth in endoscopy

SOURCE: Global Data, 1 Historical growth in last 10 years, expected to maintain *Gastrointestinal area

Continue to grow the pool of qualified healthcare professionals and conduct technical research to better understand customers’ needs e.g., through physician training programs

Promote national policies to enhance local stakeholder relationships

Further strengthen the commercial platform especially to cover Tier 2 hospitals and below

Proactively pursue local innovation activities to accelerate the introduction of China-specific productse.g., collaborate with local hospitals/academia, acquire start-ups

Engage with governing bodies to jointly shape the local healthcare landscape

70% market share in

endoscopy*

$0.6-0.7BEndoscopy*

market in 2019

+12% p.a.growth in

healthcare spending1

過去5年間で当社のトレーニングプログラムに参加

2x number of endoscopic* procedures2012-2022

China is our fastest-growing market We will make investment to capture more value in China

20,000 physicians

participated in our training programs in China over the last 5 years

ESD revenue growth p.a., 2016-18

-1%

17-20%1-2%

0-1%

*Emerging Market total : 20%

EMEA

China

US

Japan

Corporate Strategy

We have initiatives in place over the next 3 years to help realize our long-term strategy in endoscopy


Contribute to improving quality of endoscopic procedure by supporting healthcare professionals (HCPs) in the detection, characterization, staging and treatment of irregular lesions

Introduce AI-enabled CAD (computer-aided diagnosis) to new endoscopy system

Build clinical evidence to demonstrate the positive impact of new Olympus product features on the quality of endoscopic diagnosis

Continue to grow the pool of qualified HCPs in underpenetrated high-growth markets

Strategic investment in R&D and manufacturing for single-use endoscopes

Target scopes for duodenum, biliary duct and urinary duct

Initiate trials of evidence or procedure-based payment models for targeted products and regions Scale up pilot programs of wrap-around services

Prioritizing focus areas

Regional growth

Product innovation

Commercial excellence

Strengthening R&D and manufacturing

~6%revenuegrowthCAGR in ESDIn the next 3 years


Complement portfolio with single-use

Evolve the commercial model

Corporate Strategy

C Focus and scale our TSD business

FOCUS THERAPEUTIC AREAS IN TSD

1 Bronchoscopic Lung Volume Reduction

Establish leadership in BPH and enhance position in stone

management through portfolio expansion

Expand and accelerate portfolio in existing product categories and explore growth opportunities in

adjacent areas

Strengthen leadership by capturing the BLVR1 market

and expand opportunities in early diagnosis and treatment

of lung cancer

GI-ENDOTHERAPY UROLOGY RESPIRATORY-ENDOTHERAPY

To accelerate growth in TSD and enhance our value in minimally invasive therapy, we will focus on category leadership across three therapeutic areas

~$4.4B market

#3 position

~$1.8Bmarket

#2 position

~$0.3B market

#1 position

1 2 3

3

1

2

Corporate Strategy


Enhance and develop the Business Development function to complete and grow the product portfolio through external partnerships, licensing and M&A

Establish best in class regulatory affairs, clinical affairs and pursue a real value proposition based approach for each product and procedure

Globally managed from the US to strengthen our ability to compete, grow and lead in our largest market

Corporate Strategy

PT

ENT

UG

ENG

ET

Energy Devices

Urology and Gynecology


FY2019/3FY2018/3FY2017/3

We have realized growth of over 8.0% CAGR in TSD business by introducing new products

GI and Respiratory

ENT

Others

THUNDER BEAT Open Fine Jaw

THUNDER BEAT Open Extended Jaw

SnareMasterPlus

EZ Shot 3 Plus EZDilate ViziShot 2 FLEXViziShot 2 VorticCatch V PeriViewFLEX

~8.7%revenue growthCAGRIn the past 3 years

Corporate Strategy


Our key near-term growth initiatives

Expand clinically differentiated product offerings across all key categories, including ERCP, GI stent and hemostasis devices through both internal initiatives and M&A

GI-Endotherapy

Urology

Respiratory-Endotherapy

Other therapeutic areas

Expand presence of our BPH offerings in the urology suite and office Enhance product portfolio in stone management with launch of new fiber

laser technology and other endo-urology devices

Drive growth through adoption of intrabronchial valve system Expand EBUS indications and advance strong pipeline of EBUS needles

Expand energy solutions offering with launch of advanced energy device, introducing next-gen innovation in precision resection and reliable vessel sealing

Commercial excellence Strengthen sales and market development teams across therapeutic areas Invest in additional clinical data and reimbursement efforts

We have initiatives in place to drive growth in TSD in the next 3 years

~8%revenuegrowthCAGR in TSDIn the next 3 years

Corporate Strategy

There are many unmet needs in the Minimally Invasive Surgery (MIS) market today…

… which will drive three key value pools in MIS in the future

D Lead in next generation MIS

High and growingcosts

Variablehealth outcomes

Performance limitations

1 36% of common GS/urologic procedures are still done openly in the US , 2 From lost income, lost household production, disability, and health care in the US alone

Procedure innovationInnovation that reduces procedure complexity or invasivenessBy 2030, ~10% of total surgeries expected to be done endoluminally

Enhanced instrumentsEnhanced visualization and operating instruments that strengthen surgeons’ visibility and dexterity, such as Information Assisted Endoscopic Surgery System

Less invasive endoluminalmanipulatorLess invasive endoluminal manipulator systems that allow to use in office-based facilities as well as in ORs

Healthcare costs are increasing at 4% p.a. in the US Room for continued shift from open surgery to MIS1

Robotic MIS costs 3-4x more than traditional surgery

Preventable medical errors account for $1.5bn total costs2

Today’s MIS instruments cannot provide the same level of intuitiveness for visualization or control as open surgery Need for significant training for specialized and complex

procedures

Corporate Strategy

Image Navigation

Active Device Control

Autonomous View Control

Olympus is innovating to create solutions across all parts of the

MIS workflow along with partners

D Lead in next generation MIS

Form partnerships in innovation with hospitals and academia

Make targeted acquisitions to build technology strength

Ramp up internal capabilities to build sustainable platforms

Assess and develop opportunities in less invasive devices and endoluminalmanipulator platform

We will pursue initiatives to position ourselves for the future

Corporate Strategy

Improving our operating and financial performance through a major transformational program across the whole business over the next 3 years

Building capabilities fit for growth including strengthening our QA/RA function and driving efficiency in our R&D operations

Evolving our corporate culture focusing on building a competitive and performance-oriented culture with customer and stakeholder centricity

A focus on customer and value will underpin all activities in our business to ensure we address our customers’ unmet needs and clearly communicate with them the value of our products

Our corporate strategy

Corporate Strategy

Research &Development

Discontinue projects with low ROI Simplify project specifications to focus on core value-add

SCM &Manufacturing

Move to monthly review of supply / demand match Centralized sourcing initiatives

Sales Establish global pricing governance council to improve ASPs Optimize salesforce effectiveness in targeted regions

Implement global integrated facilities management service program Global travel policy to define clear rulesIndirect expenses

Detailed benchmarking vs. global peers Advice from outside

subject matter experts Top down targets set Bottom up development

of Transform initiatives 1,000+ Transform

initiatives, each with an “owner” and a timeline for accountability tracking Transform initiatives to

be included in P&L budgets

Introduce regular performance review system Targeted structural reforms to align organization with strategic priorities

HumanResources

We have embarked on a major efficiency improvement program, Transform Olympus, across the company

We will drive efficiency in our operational and financial performance

Planning process Targeted areas Example initiatives

Corporate Strategy

Commercial:Sales and marketing and services

Product:COGS and R&D

Corporate:Central corporate expenses 40%

35%

25%

Transform Olympus will position us for long term growth

~35%

Total impact on operating

margin

Greater ability to target areas of high unmet clinical / economic need for product development More frequent new product

launches with excellent quality / regulatory outcomes Higher long-term organic

growth rates Capability to execute and

integrate both tuck-in and transformative acquisitions

Employees trained in continuous improvement and execution Clear definition of roles and

accountability Performance management

through appraisal and rewards system Cross functional collaborative

teams Allocation of talent globally

based on skills Agile decision making>20%

consolidated corporate operating margin1

Identified Profit Improvement Opportunity:

The outcome of Transform Olympus will be seen in three areas within 3-4 years


High Performance Culture Higher Long-term Growth CapacityHigher Profit

Corporate Strategy

Building strong capabilities will enable us to achieve our targets

Develop medical affairs and QA/RABuild effective relationships with HCPs, payors and regulators; develop quality and regulatory assurance (QA/RA), health economics and outcomes research (HEOR) capabilities

Customer-centric innovation modelEstablish innovation practices that are driven by customer needs with more adaptive R&D, regulatory and general management practices

Data and Analytics (DnA) capabilitiesLeverage data monitoring and analysis to demonstrate positive outcomes, product differentiation and to optimize commercial model

Global HR/Talent capabilitiesAttract and retain talent through active leadership engagement and effective performance evaluation processes

Strong IT backboneBuild a strong foundation of IT support that allow for global access to standardized information

Standardized resource allocation and review mechanismEstablish effective mechanism and processes for making decisions on resource allocation

Business development capabilitiesEstablish governance and guidelines for deal sourcing and execution while strengthening integration capabilities

Capabilities related to aspirations of becoming a global medtech

Foundational capabilities

Corporate Strategy

Innovating R&D will be critical to delivering on our ambition

We are evolving our approach to R&D with 3 key initiatives

Streamline our imaging platform in endoscopy, improving ease of use for customers and ensuring clinical standardization and freeing up R&D resources for other value-added projects

Strengthen R&D portfolio prioritization governance to focus resources on the highest impact projects Strengthening oversight to ensure we meet our product development

deadlines

Transition from a strong focus on engineering to developing an equally strong QA/RA function by reallocation of resources Ensure timely delivery of products of the highest quality and safety

standards

Allocate more resources to strengthen QA/RA

Redesign product development governance

Streamline imaging platform to drive efficiency

Corporate Strategy

We have initiatives in place to strengthen our compliance and regulatory practices

Harmonize global complaint handling standard and governance to ensure global consistency and monitor effectiveness of future complaint management process

Upgrade and connect quality IT systems to enable robust trend and issue monitoring

Retrain company on complaint awareness & reporting, and complaint management process; enhance training for regulatory affairs employees

Establish new regulatory approval process and remediate recent regulatory issues

Move US regulatory submissions center from Tokyo to US

Re-organize and prepare to become compliant with new EU-MDR regulations

03 Our Growth and Performance Impact

Corporate Strategy

Sequencing of our growth and transformation initiatives

Larger M&A activities

Fully operational, at scale single-use business

At scale investment, potentially including larger M&A deals in therapeutics and next generation MIS

Targeted acquisitions to fill portfolio gaps in TSD therapeutic areas

Transform Olympus quick wins: – Early procurement impact– R&D portfolio and SKU rationalization

to capture growing value pools that drive long-term sustainability

Full impact of Transform Olympus realized: bottom-line optimization and improved org. health

New functional capabilities (incl. procurement, portfolio & inventory management, and ramp up of Global Business Services

Ramp up of single-use business

to position Olympus optimally for profitable growthto have immediate, early impact

on corporate performance

Transform to PerformFocus and Simplify

Compete to Grow

Performance impact in 3 years> 20% operating margin1

3 years


Corporate Strategy

2023/3 Financial guidance

Approx. 11% >20%Operating Margin1

2020/3 Target 2023/3


Corporate Strategy

2023/3 Supporting financial indicators

¥50Billion >20%CAGR from FY2020/3

¥47 >25%CAGR from FY2020/3

Approx. 10% >20%

2020/3 Target 2023/3

¥ ROIC1

Free cash flow growth1

EPS Growth1


Corporate Strategy

Cash allocation

Maintain current policy to achieve 30% total shareholders return by FY 2021 as stated in 16CSP(Olympus will achieve its 16CSP target of a 30% total return ratio in FY2020/3)

Maintain the proactive shareholder return policy considering corporate priorities and shareholders’ values

Prioritize allocation of funds toward growth investments as well as quality enhancement Strategic consideration of M&A based on business strategy

Shareholders’ return

Businessinvestment

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